Argentina Analysts Maintain Inflation Forecasts Amid Economic Adjustments
Analysts forecast Argentina’s year-end inflation at 23.3%, a slight increase from previous estimates. Economic growth for 2025 is revised to 4.8%. Recent inflation trends show improvement, with a significant focus on maintaining downward inflation through austerity measures under President Milei.
Argentine analysts have maintained their inflation forecasts for this year, with a prediction of year-end inflation at 23.3%, reflecting a slight increase of 0.1 percentage points compared to the previous forecast. Additionally, analysts have raised their economic growth projection for 2025 by 0.2 percentage points to 4.8%.
The survey conducted from February 26 to 28 included insights from 39 participants, such as consultancies, research centers, and financial entities. Argentina’s INDEC statistics agency is expected to release February’s inflation data on Friday, along with economic growth figures for the last quarter of 2024 on March 19.
Recently, the central bank reduced its benchmark interest rate to 29%, down from 32%, as inflation trends showed signs of decline. January experienced monthly inflation at 2.2%, marking the lowest rate since mid-2020, while annual inflation dropped to 85%. Analysts had anticipated inflation levels to generally align with or slightly exceed January’s figures while maintaining a downward trend throughout the year.
Reducing inflation has become a priority for the government led by President Javier Milei, who has implemented stringent austerity measures and is eager to maintain positive economic momentum, particularly as they seek a new loan from the International Monetary Fund.
The article highlights the recent inflation predictions made by Argentine analysts, indicating a slight rise in the anticipated year-end inflation to 23.3%. The report underscores the cautious optimism surrounding economic growth forecasts and the nation’s ongoing efforts to combat inflation under the Milei administration’s austerity strategies. Key upcoming economic data releases are anticipated to provide further insight into Argentina’s financial situation.
Original Source: www.marketscreener.com
